The dollar fell against the euro in the last month as negative data surprises out of the U.S. compared unfavorably with positive data surprises from the euro region, according to Deutsche Bank AG’s Jim Reid.
Emerging-market stocks rose a second day as the European Union promised emergency aid to Ukraine while U.S. and Russian diplomats held talks. The Standard & Poor’s 500 Index held near a record while oil declined.
The creation of the Federal Reserve 100 years ago helped develop a new world of investing in which bond returns fell, and the start of its next century may also mark a new era in monetary policy making, says Deutsche Bank AG.
European stocks rose to a six-month high this week as the Federal Reserve announced another round of bond purchases to boost the economy, offsetting renewed concern that some European countries won’t be able to repay their debts.
U.S. and European stocks fell, driving the Dow Jones Industrial Average down from an almost four-year high, and the euro declined the most in three weeks as Greek leaders wrestled with spending cuts to get aid and avert a default. German bonds rose, and commodities dropped.
Corporate bond investors are taking a “wildly different” view from the stock market, pricing in a slower-than-normal recovery and a Federal Reserve that won’t raise interest rates for two to three years, according to Deutsche Bank AG.